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Deeper relations to unlock more business for Bangladesh, India: analyst

Star Business Report
Relations between Bangladesh and India need to be considered in view of current realities and shared historical, geographical and cultural bonds to realise latent business opportunities, an Indian analyst said yesterday.
Efforts to improve bilateral relations by major political parties of both countries over the past couple of years are a major positive development, said Sri Sitaram Sharma, chairman of Kolkatabased research organisation Maulana Abul Kalam Azad Institute of Asian Studies (MAKIAS).
Sharma spoke at a daylong semi-
nar on 'contemporary thoughts on Bangladesh-India relations: challenges and opportunities', organised by the Bangladesh Institute of International and Strategic Studies (BUSS) at its auditorium in Dhaka.
Senior civil and military officials including former ambassadors, academics, businessmen, scholars, and policy makers participated in the seminar.
The relationship between the two countries has been lagging for the lack of reciprocity from the Indian side and trade balance is heavily tilted in its favour, Sharma said.
India formally exports goods worth nearly $5 billion to Bangladesh annually, and it is
believed that Indian goods worth another $5 billion also make way into Bangladesh through informal channels every year.
Bangladesh's exports to India did not increase significantly, although the Indian government allowed duty-free access to almost all Bangladeshi goods except 25 alcoholic and beverage items in November 2011.
Bangladesh's exports to India remained the same at $500 million a year, mainly due to imposition of tariff, non-tariff and para-tariff barriers on Bangladeshi goods and for lack of product diversification by Bangladeshi businesses.
Bangladesh's garment exporters have been facing an uneven compe-
tition due to 12.5 percent countervailing duty on exports to India since April 2013, although the Indian government said it has allowed duty-free access to all garment exports to the Indian markets.
"Now is the moment in the history of bilateral relations, taking political realities into account on both sides, for grand visions and grander actions," Sharma said.
Shahab Enam Khan, research director of Bangladesh Enterprise Institute (BEI) said Bangladesh has a natural market access to India's north-eastern states. “Bangladesh needs to be given access to the northeastern states for entering Nepal and Bhutan markets," he said.
He said some Bangladeshi companies, particularly Fran Group, has been feeing problems with exports to the region.
Bangladesh's exports to India remained at the $500 million level due to non-tariff barriers imposed by India, said Delwar Hossain, professor of international relations at Dhaka University. 'In India-Bangladesh relationship, we not only share more than 4,000 common bordering areas, but also we have some common objectives like poverty alleviation, countering terrorism and some social issues," Hossain said.
Bilateral cooperation has deepened in elearicity trade in South Asia, said Maj Gen SM Shafiuddin Ahmed, director general of BUSS.
A new area of cooperation between the two countries also opened: security cooperation, especially through conclusion of the long-awaited extradition treaty, he said.